Canadian Tire Corp. reported comps at SportChek grew 3.4 percent in the first quarter.

Highlights of the quarter include (figures are in Canadian dollars):

  • Companywie, consolidated comparable sales, up 6.1 percent in the first quarter. Among its other banners, Canadian Tire was up 7.1 percent, marking 20th consecutive quarter of growth. Mark’s rose 4.9 percent and SportChek grew 3.4 percent.
  • Continued strong Financial Services GAAR growth of 9.3 percent; revenue up 7.8 percent; and over two million active credit card accounts
  • Financial Services IBT was $112.4 million, up 15.8 percent
  • Diluted earnings per share (EPS) was $1.12, down 4.8 percent

“Ending our winter season with exceptional sales performance positions us well as we enter our second largest quarter of the year,” said Stephen Wetmore, President and CEO, Canadian Tire Corporation. “Our first quarter earnings are always focused on Financial Services, which delivered strong growth in IBT of 15.8 percent.”

Consolidated Overview

  • Consolidated retail sales increased $91.2 million or 3.3 percent in the first quarter. Excluding Petroleum, consolidated retail sales were up 6.3 percent over the same period last year.
  • Consolidated revenue increased $79.5 million, or 2.8 percent. Excluding Petroleum, consolidated revenue increased $128 million, or 5.4 percent in the quarter.
  • Diluted EPS was $1.12 in the quarter, a decrease of $0.06 per share, or 4.8 percent.

Retail Overview

The following financial results reflect Q1 2019 performance compared to Q1 2018.

  • Retail segment revenue increased 2.3 percent. Excluding Petroleum, retail segment revenue increased 5.2 percent.
  • Canadian Tire saw retail sales increase 7.4 percent and comparable sales were up 7.1 percent.
  • SportChek’s retail sales increased 2.8 percent and comparable sales increased 3.4 percent.
  • Mark’s retail sales grew 5.5 percent and comparable sales increased 4.9 percent.
  • Helly Hansen revenue in the quarter was $140.8 million.
  • Income before income taxes decreased $36.5 million.

CT REIT Overview

  • As disclosed in the Q1 2019 CT REIT earnings release on May 7, 2019, CT REIT announced new investments totalling $33 million.

Financial Services Overview

  • In Q1 2019, gross average credit card receivables (GAAR) was up 9.3 percent over the prior year.
  • Income before income taxes increased 15.8 percent in the first quarter to $112.4 million.

Capital Expenditures

  • Operating capital expenditures were $79.8 million in the first quarter, up from $45.4 million in the first quarter of 2018.
  • Total capital expenditures decreased $6.7 million in Q1 2019, to $106.9 million.